Insurance Board has exerted pressure on insurance companies that have
failed to increase their paid up capital to the required level to seek
merger.The board had issued a directive three years ago asking
life insurance companies to maintain a paid up capital of Rs 50 crore
and general insurance companies to Rs 25 crore by the end of FY 2069/70.
Till now only six insurance companies – four life insurers and two general insurers – have increased their paid up to the prescribed level.
Life Insurance Corporation, Prime Life, Lumbini, Prudential, Siddhartha, Asian Life and Nepal Insurance Company had increased their paid up through call in advance.
Out of them, only Prime and Asian Life have been able to increase the paid up to the required level.
Out of total 25 insurance companies, 13 are planning to raise their paid up through call in advance with a plan to issue rights shares later.
Meanwhile, Nepal Life, National Life and Sagarmatha have met the target by issuing bonus shares.
While Everest and Nepal Insurance Corporation have no plans, Neco and Premier are preparing for merger. In case of Prime Life, promoters contributed the amount that was deficit after issuing bonus shares. Likewise, NLG increased its paid up by issuing IPO.
The paid up rule does not apply to Met Life Alico, National Insurance and Oriental Insurance as they operate as branches of foreign companies.
Investors are still expecting good percentage of bonus share and cash dividend from the insurance companies which has good and high amount on reserve and insurance fund. Investors are paying high price for the company which has strong reserve and insurance fund.
# Bonus share of FY 2068/69 is not capitalized on 3rd quarter unaudited report of FY 2069/70.
*denotes paid up capital once bonus share is capitalized.
Rs. In ‘000’
# Bonus share of FY 2068/69 is not capitalized on 3rd quarter unaudited report of FY 2069/70.
*denotes paid up capital once bonus share is capitalized.
Src : sharesansar
Till now only six insurance companies – four life insurers and two general insurers – have increased their paid up to the prescribed level.
Life Insurance Corporation, Prime Life, Lumbini, Prudential, Siddhartha, Asian Life and Nepal Insurance Company had increased their paid up through call in advance.
Out of them, only Prime and Asian Life have been able to increase the paid up to the required level.
Out of total 25 insurance companies, 13 are planning to raise their paid up through call in advance with a plan to issue rights shares later.
Meanwhile, Nepal Life, National Life and Sagarmatha have met the target by issuing bonus shares.
While Everest and Nepal Insurance Corporation have no plans, Neco and Premier are preparing for merger. In case of Prime Life, promoters contributed the amount that was deficit after issuing bonus shares. Likewise, NLG increased its paid up by issuing IPO.
The paid up rule does not apply to Met Life Alico, National Insurance and Oriental Insurance as they operate as branches of foreign companies.
Investors are still expecting good percentage of bonus share and cash dividend from the insurance companies which has good and high amount on reserve and insurance fund. Investors are paying high price for the company which has strong reserve and insurance fund.
FINANCIAL HIGHLIGHTS OF INSURANCE COMPANIES
Rs. In ‘000’| Life Insurance Companies | Paid Up Capital | Reserve | Life Insurance Fund | Last Traded Price | Paid up After Bonus Capitalization* |
| Asian Life Insurance Co. Limited |
497,128
|
150,178
|
2,901,750
|
251
|
|
| Gurans Life Insurance Co. Ltd. |
360,000
|
94,975
|
539,144
|
151
|
383,400
|
| Life Insurance Co. Nepal |
404,778
|
26,264
|
11,050,505
|
1,430
|
404,778
|
| National Life Insu. Co.Ltd. |
501,337
|
77,484
|
8,224,474
|
702
|
501,337
|
| Nepal Life Insurance Co. Ltd. |
375,000
|
494,709
|
11,987,059
|
1,652
|
637,500
|
| Prime Life Insurance Company Limited |
432,000
|
306,518
|
1,061,639
|
272
|
488,160
|
| Surya Life Insurance Company Limited |
360,000
|
80,306
|
350,799
|
178
|
411,300
|
# Bonus share of FY 2068/69 is not capitalized on 3rd quarter unaudited report of FY 2069/70.
*denotes paid up capital once bonus share is capitalized.
Rs. In ‘000’
| Non-Life Insurance Companies | Paid Up Capital | Reserve | Insurance Fund | Last Traded Price | Paid up After Bonus Capitalization* |
| Alliance Insurance Company Limited |
162,325
|
46,548
|
74,671
|
138
|
|
| Everest Insurance Co. Ltd. |
101,250
|
137,154
|
48,873
|
248
|
|
| Himalayan Gen. Insu. Co.Ltd. |
100,800
|
37,547
|
31,889
|
185
|
|
| Lumbini General Insurance |
153,409
|
10,922
|
53,080
|
127
|
|
| NB Insurance Co. Ltd. |
141,959
|
39,179
|
22,505
|
63
|
|
| Neco Insurance Co. |
121,275
|
54,178
|
44,807
|
113
|
135,221
|
| Nepal Insurance Co.Ltd. |
109,822
|
160,037
|
18,837
|
233
|
131,786
|
| NLG INSURANCE COMPANY LTD. |
157,500
|
109,775
|
156,114
|
441
|
270,000
|
| Premier Insurance co. Ltd. |
102,000
|
60,104
|
51,556
|
124
|
117,300
|
| Prudential Insurance Co. |
100,000
|
58,730
|
56,742
|
157
|
120,000
|
| Sagarmatha Insurance Co.Ltd |
129,159
|
342,642
|
79,659
|
750
|
258,318
|
| Shikhar Insurance Co. Ltd. |
125,000
|
104,266
|
126,434
|
465
|
175,000
|
| Siddhartha Insurance Limited |
100,000
|
55,408
|
65,327
|
233
|
132,000
|
| United Insurance Co.(Nepal)Ltd. |
100,800
|
57,332
|
23,791
|
265
|
# Bonus share of FY 2068/69 is not capitalized on 3rd quarter unaudited report of FY 2069/70.
*denotes paid up capital once bonus share is capitalized.
Src : sharesansar
